The alternative financing industry has been growing by leaps and bounds, and it has been a boon for countless small business owners in need of funding. But all this growth has turned the industry into an unregulated hodgepodge of lenders, platforms, and products.
The truth is the term “alternative finance” is really catch-all phrase that describes several, very different financing arrangements. Today, just about any non-bank lender technically qualifies for that description. Moreover, as increasing numbers of small business owners seek non-traditional funding platforms, the alternative financing industry keeps expanding with new, yet similar-sounding products.
So how can you as a small business owner looking for non-bank financing make sense of it all? The following are 10 simple explanations of the most popular forms of alternative financing available to small business owners
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